“Corporate Gift-Giving Advice”

Hard to believe it’s already past Labor Day.  Another business year has flown by.  Halloween merchandise is already in the stores and the winter Holidays won’t be far behind.  And we all know what that means, right?  It’s time to order your Holiday gift-giving CALENDARS!  That’s right, it’s time to start thinking about ordering those corporate calendars to give away to your existing customers and potential new clients during the Holiday season.  The question is: what theme should your calendar embrace?  Landscapes?  Golf?  Unicorns and rainbows?  Or maybe photos of your own products.  No matter what your marketing department decides for this year’s gift-giving calendar, I’d like you to consider the following advice from the Buyer’s side of the desk . . . from someone who is on the receiving end of those wonderful calendars.  Ready?  Here it is:  DON’T HAND OUT CALENDARS! 

Hopefully I’m not too late in providing this recommendation.  Hopefully your company hasn’t already dished out thousands of dollars on picturesque calendars featuring waterfalls, hot air balloons and puppy dogs with the hope of having it hanging proudly in the office or cubicle of your favorite Buyer.  It is, after all, marketing’s theory that if your company’s name is staring the Buyer in the face 365 days of the year, at some point they’ll think of you when sending out request-for-quotes or when awarding purchase orders.  And in reality . . . the marketing team is right!  Research has shown that people do respond to advertising that leaves impressions.  The best advertisements use images, jingles and stories to focus attention to their brand.  Advertisers attempt to get the potential client to connect their brand name with a positive impression; an encouraging reinforcement that their products and services will bring satisfaction.  That’s why your marketing department is so insistent on ordering calendars with incredible scenery, calming subject matter or leisurely pursuits such as golf. 

So from the Buyer’s perspective, the problem ISN’T the fact that you’re giving me a calendar for the Holidays.  The problem is that EVERYONE is giving me a calendar for the Holidays.  Nearly every Sales Professional mails their clients new calendars or hands them out while visiting the client’s facility.  On an average year, Buyers received dozens of calendars from the supply base, all with the intent of advertising their brand name with the hope of continued business.  But consider this reality: How many calendars can I actually going to use in my office?  How about . . . ONE?  Oh, I might bring another calendar home for the house too, but that’s about it.  And odds are, neither one of them will be the one YOU gave me.  So what happens to the rest of the calendars the Purchasing group receives?  One of three things will happen to them: (1) They end up in a pile on an un-used desk in the office for other employees working for departments other than Purchasing to take; (2) they end up in a box and donated to a charity group for kids or seniors who don’t normally receive calendars, or (3) they end up in trash.  What a shame!  What a waste of a thoughtful gift.  And what a waste of marketing expenses on your company’s part!  So what do Buyer’s recommend Sales Professionals bestow during the Holidays to their loyal clients and potential consumers of their products?  How can a Supplier stand out from their competition and offer something they’ll be remembered by?  The answer is today’s FEEBACK: Sales Advice from the Buyer’s Desk. 

Step One in presenting a gift is to find out you should even do it!  Many companies do not allow their Buyers (or any employee in the company) to accept gifts, lunches, outings . . . or even a pencil.  Different corporations define different standards of “corporate ethics” including what a Buyer can and cannot accept.  A Sales Professional should always be familiar with the client’s defined corporate ethics before offering the Buyer anything, much less a Holiday gift.  Most large companies have ethics guidelines on their corporate website.  Find it, read it and comply with it.  If you can’t find anything about gift-giving policies on their website then ask for a copy of the “corporate ethics code” and the “supply-based ethical guidelines” from the Buyer or from their Human Resource department.  NEVER tempt a Buyer or any employee within a client company with even the smallest of gifts, donation or offering if their ethics code does not allow it.  Never put anyone in jeopardy of losing their job!  Not only will it risk the Buyer’s employment, it will also endanger your own company in never providing product to that client again. 

If you are allowed to give a gift to the Buyer per his company’s approval, then Step Two is to find out what the dollar value limitation is.  If it’s $25, KEEP IT AT $25!  Don’t hand the Buyer a gold-plated pen set worth $100 with a wink and a smile and tell him it’s only worth $25.  Giving away a gift beyond the true value limitation is just as bad as giving a gift when NONE are allowed.  In my opinion . . . it’s WORSE!  Not only are you not complying with their corporate ethics guidelines, you’re also trying to pull the wool over their eyes!  Once you are educated on the ethics rules and dollar value limitation, then Step Three is to rethink your strategy in the “type” of gift to present.  Due to the fact that nearly every Sales Professional hands out calendars, try thinking outside the box and consider other useful office products stamped with your company name that could stay within the confines of the Buyer’s office and desk and be noticed every working day.  Pens are okay but supplier’s names are usually too small on it to be noticed; and pens usually have a way of disappearing or being lost.  So from the Buyer’s perspective, here are some inexpensive items you can hand out that could incorporate your company’s name; items that will be used and noticed on a regular basis by the Buyer: calculator, flashdrives, paperweight, tape dispenser, mouse pad, paperclip magnet base, office accessory valet, desk clock, portfolio, business card holder, small dry erase board, cell phone case, etc.  These are ideal gifts to hand out for a number of reasons:  They’re used on a weekly if not daily basis by Buyers; they’re small enough to remain on the Buyer’s desk; most would be under a minimal gift dollar value; they’re large enough to incorporate your company’s name; and most of your competitors won’t be giving these away.  Check out office gift catalogs on-line for items that can be personalized with your corporate name on it.  Or, simply have professional looking stickers created with your corporate name and logo and place it on the item.  Either way you’re sure to make an impression with the Buyer as a thoughtful gift that won’t be given away or end up in the trash. 

Step Four: Don’t Forget the Family!  So many Holiday gifts handed out by Sales Professionals focus on the Buyer but miss a great opportunity to make a much bigger splash with someone more important than the Buyer, and someone who has more influence than the Buyer’s manager . . . THE BUYER’S FAMILY!  Because most Sales Professionals give out calendars and golf balls, they overlook a prime market in the Buyer’s family.  Find out if the Buyer is married or has kids.  If they do, present a gift or gift certificate that focuses on them: certificate for a salon treatment, driving range, pizza parlor, movie tickets, household items, gift basket, etc.  By giving a promotional Holiday gift to the Buyer’s family you’re secretly creating your own “sales force” within the Buyer’s own house.  That’s because it will create a memorable impression that the spouse and family will never forget and, more important, THEY will never let the Buyer forget!  So do something different this Holiday Season.  Think outside the calendar and stand out from your competition.

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“Think Like a Buyer”

I am a Corporate Buyer.  I am responsible for the procurement of materials that compile the products my company makes and sells, as well as the services that keeps my company running on a daily basis.  You are a Sales Professional.  You are responsible for developing strategies that provide me with the very materials and services my company needs to endure.  Sometimes your sales strategies work in securing purchase orders from me.  And sometimes they don’t.  And sometimes you end up with the order anyway, not really knowing if your strategies had anything to do with it.  So how do you know if a specific sales strategy actually worked or if some other factor caused me to place the order to you?  How do you know if what you’re doing is either pleasing me or upsetting me?  How do you know what preferences I have in regards to communication, documentation, support and the development of a business relationship? 

As a Buyer I am a reserved and cautious individual.  Because of my position, I am loyal to my company.  That’s because my main responsibility is to protect my company both LEGALLY and FINANCIALLY.  So I feel it necessary to safeguard the company to the best of my ability.  Part of that safeguard is to give YOU, the Sales Professional, as little information as possible.  Because the less information you have, the more leverage I have.  So chances are I won’t tell you about your competitors.  I won’t tell you whether or not your sales strategy worked in getting the order.  I will tell you if your price is too high, but I’ll never inform you if it’s surprisingly low.  I’ll tell you if your competitor has a lower price, but I won’t tell you if that competitor can even provide me what I asked for.  Because in order to protect my company I must keep ALL of these things inside my head. 

So the best way to sell to me is to get inside my head!  What am I thinking?  What am I planning?  The best way to do that is to walk around in my shoes, and “mentally” sit behind my desk.  Try to see things from MY perspective and not just yours.  Try to imagine MY goals and not just your company’s.  Find out what I need to hear instead of what you can’t wait to tell me.  Find out what I want and need instead of what you can’t wait to give me.  To do that you must understand what it is I do, what I’m responsible for, what my goals are and why I make the decisions I make.  And the first step in getting inside my head is to understand the world I live in . . . the world of Corporate Purchasing. 

Concerning the “control” of costs, the Purchasing Department is the most significant area in a corporation.  That’s because generally speaking, two-thirds of the cost of goods sold are purchased items.  Now sometimes it’s true that design and manufacturing has a major impact on costs.  But that’s only true when those organizations are not run correctly.  Again, as a Buyer, I am responsible both financially and legally for protecting my company.  And in doing that, it’s my responsibility to know what suppliers are out there, what solutions they can provide and of what value that solution is to my company. 

SO THINK LIKE A BUYER:  If you were a Buyer, how would you find out what suppliers are in the marketplace that could provide the products or services your company needs?  And as a Sales Professional, how can you keep the Buyers continuously informed as to who you are and what you can do for them?  Actually, it shouldn’t be difficult to think like a Buyer . . . because the fact is you ARE a Buyer!  Now you may not be a Buyer for a Fortune 100 company, but you are nonetheless a Buyer.  You buy food, clothes, cars and a house.  You buy electronic equipment, home services, CD’s and power tools.  And in doing so there are not many differences as to how YOU think and act as a “buyer” and how Corporate Buyers think and act.  You want the best product and service for the best value that best fits your needs.  Above all you want satisfaction.  And if you aren’t satisfied you want someone to take care if it immediately and without hassle.  THAT IS CORPORATE BUYING IN A NUTSHELL! 

And because you’re a Buyer, the same things that excite you and upset you when buying your own home products and services also excite and upset Corporate Buyers.  Have you ever purchased or leased a vehicle from an automotive dealership?  If so, think about that experience and think about the things that annoyed you going through that process.  How about salespeople who:  Tried to sell you something you didn’t want.  Tried to sell you options you didn’t want.  Acted in an unprofessional manner.  Did not pay enough attention to you.  Were unprepared and not sure what to do.  Over-promised and under-delivered.  Were insincere and concealed information.  Were too persistent or aggressive.  Did too much talking and not enough listening.  Failed to do any post-sales follow up. 

Now, think about the times you had a great experience buying something.  Think about what excited you as a consumer that made you want to go back to that company.  How about Sales Professionals who:  Looked out for your best interest.  Didn’t try to sell you on options you didn’t want.  Acted in a professional manner.  Paid attention to you and your needs.  Were prepared to work with you.  Delivered what they promised.  Were honest and trusting.  Didn’t pressure you into anything.  Listened to you and responded to your needs.  Followed-up after the sale. 

When you consider the Buyer’s perspective, the Buyer’s point of view, you can imagine yourself sitting behind their desk and walking around in their shoes.  By imagining what business is like from the Buyer’s perspective, you gain valuable insight into how they think, feel, hear and see the business world.  Sitting back for a moment and taking the Buyer’s perspective also helps to change your own awareness of the business world.  It changes your assumptions, generalizations and beliefs that were created in your own mind due to the sales world you live in as well as perceptions instilled by your co-workers and management.  Take the time to brainstorm with your colleagues and consider what it might take for the Buyer to consider your company.  What is it within their own responsibilities, goals, wants and needs that would compel them to consider you?  You never really understand a person until you consider things from his point of view.  Of course you don’t need to agree with his view, but trying to understand it wouldn’t hurt.

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“Sales Meeting Mistakes to Avoid”

During my time in Corporate Purchasing I’ve ask my colleagues to list their top “pet peeves” when it comes to sitting in sales meetings with Suppliers.  After all, the sales meeting represents the key most important time you can spend with a Buyer, especially if you currently don’t do any business with their company.  The sales meeting makes or breaks your future opportunities in picking up new clients and expanding your sales revenues.  If the meeting is beneficial from the Buyer’s perspective you’ve got your foot in the door.  If the meeting goes sour . . . good luck getting a second chance.  So understanding what annoys Buyers, what reduces your chance of a successful meeting, is incredibly important because the majority of the Buyers won’t even tell you during or after the meeting! 

One of my first Blogs (May 27, 2012) focused on the Number 1 Sales Meeting Mistake and it will be reiterated in a condensed version here:  The biggest mistake you can make during a sales meeting is to give the same generic presentation to every department in the client’s company.  If you have a generic sales presentation you use on everyone, it means that a portion of the information you’re presenting is completely useless to any given individual.  Either you’re providing technical information to someone who may not be able to comprehend what you’re saying, or you’re providing commercial information to someone who isn’t interested.  Instead, develop sales presentations that are personalized to each specific area of the client company.  Create them based on their job title, their role in the company, their responsibilities, their yearly goals and their interests and needs. 

The Second Meeting Mistake is arriving too late or too early for the meeting.  Before you leave for the meeting you need to make certain you don’t show up late even if it means having to sit in the visitor lobby or our own vehicle for a long period of time before the meeting starts.  Do whatever you have to do to make sure you’re there on time especially if you’ve never been to the Buyer’s office complex before.  One of the worst calls a Buyer can get before a scheduled meeting is from the Sales Rep explaining they’re stuck in traffic.  That definitely annoys Buyers!  What if the Buyer hadn’t received the call and is waiting for you in a scheduled conference room or in the lobby?  The Buyer is only going to wait so long until he cancels the meeting.  Good luck getting a second one.  Now most Buyers will understand if things were clearly out of your control; the plane was late, there’s a death in your family, you got in an accident, etc.  Stuck in traffic is NOT an excuse . . .  it’s poor planning.  Too often I have Sales Professionals show up late for the meeting which does one of two things: it pushes my whole day out or it gives the Sales Rep less time to sell me on their company.  Either my day expands or your meeting time shrinks.  (I prefer the latter.)  Not only must you not be late, but don’t be too early either!  This applies if there is no lobby or buffer area to wait in.  Even if you have to wait outside the Buyer’s department area for awhile, make sure you don’t show up any more than 5 to 7 minutes before the Buyer is expecting you.  That upsets Buyers just as much as being late.  Sales Reps who show up early and hangs around the Buyers area makes for an uncomfortable time,  This is especially true when the Buyer doesn’t have a waiting area for the Rep and they’re hovering around the Buyer’s desk while the Buyer is trying to get something done. 

The Third Meeting Mistake is to have too many people from your company meeting with Purchasing.  Don’t Overpower the Buyer!  How many people are you bringing from your company to for the meeting?  It’s best not to show up with more than two company representatives if the appointment is with only one Buyer.  Don’t make the Buyer feel as if he’s being ganged up on.  Don’t make him feel like he’s on trial.  How would you feel if you were in a car dealership to buy a vehicle and you had three salespeople sitting at the table with you?  It wouldn’t feel very relaxing for you and it’s just as tense for the Buyer.  When a Sales Reps’ manager or vice-president finds out that a meeting with the Buyer of a specific prospect has been arranged, they usually want to hoard in on it.  It’s not a good idea if it means there’ll be more than two of you with one Buyer.  It’s always a good rule of thumb to ask the Buyer how many people he can accommodate for the meeting.  Sometimes it’s a matter of real estate as to how many people he can handle.  A conference room may not be available and the Buyer won’t want a lot of company representatives crowding around his desk.  So when you’re setting up the meeting, ask the Buyer ahead of time how many people he can accommodate and make sure he knows exactly who’s attending the meeting; their full name and job title.  That’s important information the Buyer will need to know ahead of time in case he needs to put your names in with security. 

The Forth Meeting Mistake is failing to remove distractions.  Before you meet with the Buyer, always make sure your cell phone is either turned off or set to vibrate.  Taking a call or returning a page during a meeting tells the Buyer there’s someone more important than him.  And yes, it has happened to me more times than I care to remember!  Also, if your cell phone is turned on and you ignore the ring, it may tell the Buyer you are willing to neglect a client after the sale.  If you are expecting an emergency call, business or not, inform the Buyer at the start of the meeting and ask for permission to take it if it comes in.  Think about how irritating it is when you’re dealing with a sales clerk at a department store.  You’re standing in line waiting for your transaction to be completed when the phone on the store counter rings and the clerk answers it thereby ignoring you!  It’s irritating and unprofessional.  Also, if your cell phone ringer is off but your vibrate is on, never pull it out during the meeting to see who’s calling.  That’s just as rude as answering it. 

The Fifth and final Meeting Mistake is to use a Power Point presentation.  Staring up your laptop and opening the PowerPoint takes up valuable time.  And I’ve sat though many sales meeting in which the Sales Rep’s computer either wasn’t working properly or the PowerPoint wouldn’t open.  The Rep was without his presentation and fumbled though the meeting.  Not fun for either one of us.  Another good reason not to use a PowerPoint is due to the fact that it’s almost impossible for both the Sales rep and the Buyer to look at the screen at the same time.  And if you’re planning on using a projector, you run the risk of eating up time setting everything up, especially if you don’t have access to the meeting room prior to start time.  When I think about how many sales presentations I witnessed in which the laptop wasn’t working, or we had to wait for it to reboot, or the projector malfunctioned.  Don’t waste time!!!  Don’t appear to be unprepared!  If the Buyer jumps ahead of your PowerPoint agenda and asks about something that’s five slides away it will ruin your well-rehearsed meeting and make it difficult to get back on track. 

So the bottom line is to create a sales presentation (on paper if possible) geared towards the person you’re presenting to, arrive on time, turn off your cell phone and don’t overpower the Buyer with too many people.  Sounds like Sales 101 but if you could spend a week sitting behind my desk you’d soon learn that Sales 101 and common sense is not has common as you think!

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“The Buyer-Preferred Commercial Brochure”

In a typical week I have numerous meetings with Sales Professionals who offer their company brochures and laptop presentations to show what their company can do for me.  Rarely does a Sales Rep inquire what I actually need!  Sometimes I have meetings with Sales Professionals who don’t understand why they rarely, if at all, receive a purchase order from me.  They spend all of their time and energy criticizing the purchasing process instead of focusing on correcting previous mistakes and improving their opportunities.  In either case I usually sit in my chair looking at the Sales Rep, thinking to myself, “If I was in Sales, I know what I would do to get a potential customers attention and increase future business.”  I’ve said this before but if Sales Reps could sit behind my desk for a week they would come to understand that Sales 101 is not as common as one would think.  The fact is relatively few Sales Professionals are actually doing the things that Buyer’s prefer.  And one of them has to do with those nice brochures you provide us; something that most Buyers would prefer but few Suppliers do. 

If your company insists you hand a brochure to the Buyer, you will want to consider the type and size of brochure to use.  In reality, Buyers would prefer to receive a ONE-PAGE COMMERCIAL BROCHURE, that is, a brochure that doesn’t necessarily focus on the technical side of your company but more on the commercial side and summarized on one page.  “But Chris, what about that expensive, color brochure I gave you that covers all of our technical capabilities?”  Would you like to know what happens to them?  I’m really not supposed to be telling you this . . . but the vast majority of those nice brochures you give us Buyers usually end up either in the trash or in our filing cabinet never to be seen again.  The fact is, I don’t have ANY brochures at my desk.  I’ve thrown them all out.  Why?  Because I just don’t have the room to keep everyone’s brochure in cabinets or general area.  And I rarely would use them for reference material anyway.  Most Buyers don’t.  I know because I ask them!  But Buyers WOULD consider keeping your brochures within reach if they focused on the Buyer and not the engineer or end-user of your products. 

One of the problems with a typical supplier’s brochure is that there’s too much information and data to read.  Buyers don’t have the time much less the interest.  Keep the information you provide short, to the point and on one page or one double-sided page.  But the main problem is that most supplier brochures contain too much technical information and not enough COMMERCIAL content.  Again, most supplier brochures are geared towards engineering, manufacturing and the end-user.  That’s fine as long as the information is intended for them.  But remember that we Buyers are COMMERCIAL.  It is true that some Buyers appreciate and may request some type of technical enlightenment.  It’s your job to find out what they prefer!  Have a technical brochure and a commercial brochure created and available.

 So think like a Buyer . . . If you were a Buyer, why would you prefer a one-page commercial brochure?  And as a Sales Professional, what could you do to compel your company to create a One-Page Commercial Brochure?  At the very least, here’s what your One-Page Commercial Brochure should contain, some of which may or may not be applicable to your company:  Company name, address and contact information.  Client vendor code (if you have one).  Primary products and services.  Parent company information (if any).  Locations of manufacturing, sales, and service.  List of current clients.  Standard product and service warranties.  Maintenance and training capabilities.  Preferred payment terms and if you’re flexible.  Product delivery capabilities (IncoTerms, i.e. FCA, FOB, etc.).  Quality certifications. 

Creating and maintaining a Commercial Brochure also gives you a perfect and legitimate reason to get in front of the Buyers and update us of your current capabilities.  Here is an example to copy and paste of what your Commercial Brochure could read like:  Commercial brochure for: RENAISSANCE MACHINE COMPANY, 426 Central Avenue, Anytown, Michigan  40001, Main telephone: 248-123-4567, Website www.RenMachine.com, Global Motors Corporation Vendor Code: 54321.  (Then give a short description of your company)  Renaissance Machine Company is a privately-owned Tier I manufacturer of capital equipment supporting the automotive power-train industry.  Renaissance specializes in reduced cycle-times and close machining tolerances at competitive costs to their clients.  Renaissance focuses on proficient program management, prompt warranty service, installation and maintenance capabilities and expert training programs.  (Follow this with your commercial information)  Main Headquarters: Anytown, Michigan, with sales offices located in Greenville, Indiana and Lakeview, Ohio.  Generic Products and Services: Gear cutting machines, deep-hole drilling, dial machines, I.D. and O.D. grinders.  On-site installation and qualification services, maintenance programs, training.  Products in Global Motors Corporation Facilities (as of 2005): (12) gear cutting machines – GMC Newtown Transmission Plant, (8) dial machines – GMC Bridgeport Transmission Plant, (6) grinders – GMC Oakville Engine Plant.  Financial Capabilities: Renaissance typically receives purchase orders ranging between $250,000 to $3,000,000.  Renaissance has a strong financial balance sheet and up to $10,000,000 in loan guarantees from Allstate Bank.  Client Specifications: Based on the successful completion of several projects for Global Motors, Renaissance Machine is thoroughly familiar with and compliant to Global Motors specifications, both corporate and plant, including but not limited to mechanical, controls, safety, ergonomic and commercial specifications.  Shipping and Delivery: Renaissance has global shipping capabilities and is able to logistically manage the delivery of product, including but not limited to insurance, shipping fees, taxes, duty, and import fees worldwide.  Service and Spare Parts: Renaissance offers full service and spare parts capabilities for warranty and non-warranty coverage, including a 24-hour hotline for emergency requirements.  Service and spare parts locations are conveniently located in Anytown Michigan, Newtown Michigan, Bridgeport Ohio, and Oakville Tennessee to better service Global Motors facilities.  Renaissance understands the importance of the timeliness, quality and professionalism of on-site service to its clients and strives to maintain its focus on first-class customer service.  Standard Warranty:  Renaissance machine’s standard warranty is as follows: All parts and labor shall be guaranteed for a period of one (1) year and shall start on the date the Global Motors plant begins running production parts on the specified product.  Renaissance also offers extended warranty programs upon request.  Standard Payment Terms: Standard payment terms are Net 30.  Specific cost reductions are available for progressive payment terms.  Program Management: Renaissance Machine understands that proficient technical capabilities can be purchased from a number of our competitors.  What makes Renaissance stand out is our program management team and their competence in communication, timing, scheduling, and project organization that ensures on-time deliveries of qualified products.

Of course, your Commercial Brochure should be laid out in a professional manner and in bullet-point format; not all run together like a book.  Additional Tip from the Buyer Desk:  Once you have your Commercial Brochure complete, hand it to the Buyer and say, “I’m sure you receive hundreds of technical brochures from companies.  Being in Purchasing I thought you’d like one that’s more gears to your wants and needs.  So we had one especially created for you.”  THAT will get the Buyer’s attention because now you’re thinking in his best interest.  And by the way, all of these items on the Commercial Brochure I’ve given as an example should be the same items you cover in your sales meeting with the Buyer!  THESE are the things Buyers WANT and NEED to hear from you.  Technical and product capability information is good and should be ready to discuss.  The next time you’re starting to prepare a sales presentation and provide a company brochure, ask yourself the following questions:  Who am I about to present to?  What is this person’s job title?  What are this person’s goals and responsibilities in the company?  Therefore, what would most likely interest them in a sales presentation and brochure?

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“Communication Between Buyers and Sellers”

As part of my (almost) 35 years in the business, next week I’ll have achieved 12 years as a Senior Buyer and Procurement Lead in corporate purchasing; 12 years of project budgets, request-for-quotes, quote comparisons, negotiations, supplier selection, purchase order placement, and resolution of project issues.  And in that time, the hardest thing I’ve found that we Buying and Selling Professionals do is to properly and clearly COMMUNICATE.  In fact, I’ve discovered that the EASIEST thing to achieve is MIScommunication . . . miscommunication with our colleagues, miscommunication with upper management and miscommunication with the supply base.  Trust me, I do it on a daily basis. 

When considering communication, Buyers and Sellers need to agree as to HOW we are going to communicate with each other.  What are the guidelines, who are the players and what are the resources?  For instance:  “Can we agree that if the specifications change, Judy Smith will contact all of the people on this list via e-mail.”     “If you are going to be late with your product, can we agree that you will contact all of the people on this list via telephone.”     “If you have a problem with me, I would appreciate it if you didn’t go over my head to get what you need.  Come to me first.  Then, if I don’t comply, I can’t complain that you went to my supervisor.” 

It is impossible to ensure perfect communication for the simple fact that there IS no such thing.  That’s because everyone has their own definition of “perfect” communication.  At some point in time during the progression of a project, a number of things will be missed, a number of people will be ill-informed and a number of communication tools will not be utilized to their best capacity.  The best way to ensure good communication is to be “APT”.  Although “APT” is an acronym we’ll use in this Workbook, the definition of the actual word “apt” means “to be appropriate”.  As far as we’re concerned, APT is also an acronym for Action, People, and Tools.  ACTION:  What action are you doing right now?  PEOPLE:  Who does your action affect?  TOOLS: What communication tool should you use to let the affected people know about your action? 

In other words, in order for communication to be “apt” (to be “appropriate”) you must constantly think, “What am I doing right now, who does it affect and how am I going to let them know about it?”  The best way to accomplish this is to have a list instantly available to you of all the people on the program that includes their responsibilities, telephone numbers, fax numbers, e-mail addresses, pager numbers, cell phones and mailing address.  You could set up a number of e-mail group addresses so that every time there’s a change in plans you can e-mail that change to the appropriate group to make sure everyone knows about it.  Every time you do something, think to yourself, “Who does this affect either directly or indirectly, what’s the best way to let them know, and what’s the best way to get feedback?”  If everyone was “APT”, including Buyers, projects would run a lot smoother. 

The problem with communication in the business world is that it’s becoming too bureaucratic, too complicated and too impersonal.  Effective communication is, in fact, relatively rare in the business world.  Until recently, “trickle-down” and “one-way communication” was the widely accepted form of human interaction.  The problem with one-way communication is that it does not provide for feedback.  Nor does it provide the sender the assurance that the communication was received and understood.  A good way to ensure that communication is accepted and understood is to keep it “two-way” and, most importantly, keep it simple.  As an example, if two people lived next to each other in a subdivision and one of them wanted to borrow a hammer, he would either call the neighbor on the telephone or simply walk across the lawn and ask to borrow it.  However, if these two neighbors were in a corporation using typical corporate communication processes, the first neighbor would tell his son, who would tell his sister, who would tell her mother, who would go next door and tell the second neighbor’s wife, who would finally tell her husband.  By that time, the request would be so diluted that the second man would ask himself, “What is it that my neighbor is trying to tell me?” 

There is no secret recipe for learning to communicate well, but there are some basic concepts that can be mastered with relative ease.  In fact, there are three basic steps to ensure successful communication.  The first step is to allow your communication to accept feedback in order to ensure that the receiver obtained and understood the communication.  Many times, communication is sent with the assumption that the message was received and the task will be carried out to the senders’ expectations and timeframe.  At times, the receiver either does not have the time to fulfill the expectation, or is too embarrassed to admit that they didn’t understand what was expected.  Feedback will ensure that the sender has been heard, has been understood and that the content of the communication will be completed within a given timeframe. 

The second step is to make sure that documented communication is not overcomplicated.  In today’s world of overburdened responsibilities, the average worker does not have time to sift through pages and pages of information, retain the contents and to be expected to adhere to the criteria and goals.  The document owner should review the documentation and remove any repetitive and overcomplicated themes, directions or explanations.  Many times people will receive a document that is either too overwhelming to read and comprehend or the basic task and required outcome is diluted.  Make sense of what can be excluded from the document and don’t overwhelm the receiver with unnecessary and recurring content.  Make sure the content criteria and goals stand out and are easily understood. 

The third step is to make sure you don’t get trapped in the corporate/bureaucratic process of trickle-down and one-way communication.  If you need to let someone know something important, walk over to their desk and tell them!  Don’t expect a voice-mail, e-mail or a second party to do it for you.  I have people who literally sit across from me sending me e-mails asking for information.  Dude . . . I’m sitting right next to you!  Employee workloads and lack of time doesn’t guarantee the receivership and follow through of electronic/secondhand communication.  Face-to-face communication may be the most basic form, but it is still the most effective and genuine type to use.

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Be a True Sales “Representative”

I recently walked into a retail store to purchase a piece of jewelry for my wife’s birthday.  Standing at the jewelry counter with no one in front of me or behind me, I patiently waited for the sales assistant to finish her conversation with another assistant.  They stood roughly eight feet from me on the other side of the counter and could clearly see me waiting.  The conversation I overheard had nothing to do with work; it was merely a discussion about their weekend.  I raised my finger and said, “Excuse me . . .”.  I was met with a half turn and the reply, “I’ll be right with you.”  After another few minutes of weekend talk the sales assistant finally turned to me and asked with a hasty tone, “Can I help you?” to which I replied, “No, that’s okay.  I didn’t mean to interrupt your conversation.  I’ll just look for something at other store.”  As I turned and walked away from the counter the sales assistant yelled out, “No sir, please, I’m sorry.”  Too little, too late.  I continued my walk through the front doors and said to myself, “I’ll NEVER buy anything from here again!” 

Now how many times have you said THAT to yourself in your private life while walking out of a retail store?  “I’ll NEVER buy anything from here again!”     “I’ll NEVER shop here again!”     “I’m NEVER coming back here again!”  And sometimes we never DO go back . . . while other times we have no choice and end up returning, though not necessarily to the same department we had the problem with.  And it doesn’t matter if it’s a retail store, on-line shopping, a restaurant or a home service company . . . ONE employee can ruin their company’s chances of repeat business. 

So the question I pose is this:  Is it fair to judge an entire organization based on the poor experience with just one employee?  Is it fair not to go back to a restaurant simply because the wait staff was inattentive?  Is it fair not to shop for products at a store when one sales assistant ignored us?  Is it fair to never use a home painting company again simply because their staff failed to show up when they said they would?  I’m always one to give someone a second chance.  But when wait staff, sales clerks and servicemen continue to provide inadequate representation I will go out of my way to ensure I NEVER do business with them again.  In fact most of us do that.  In our private lives we will judge an entire organization based on the inadequate representation of one sales or service professional.  Whether it’s fair or not, we evaluate an entire company based on the actions, or lack there of, of one individual. 

Well guess what . . . ?  It’s the same with Corporate Buyers!  Whether it’s fair or not, Corporate Buyers will judge an entire company based on the actions, or lack thereof, of one Sales Representative.  When a Sales Professional continues to provide inadequate service, poor response time, deficient communication and unprofessional demeanor the Buyer will go out of their way to ensure they never do business with that supplier again.  I’ve talk with dozens of Buyers who tell me they won’t buy products or services from a specific supplier simply because they don’t want to have to deal with the Sales Rep.  They may say it has to do with product capability or the unit price, but there are times that Buyer’s simply do not want to conduct business because the Sales Representative is incompetent. 

Lately it seems to Buyers that the title “sales representative” has a tendency to be taken too lightly by those who possess it.  The term “REPRESENTATIVE” refers to one who symbolizes what their company stands for and portrays what their company is capable of.  This symbolizing is represented through dress, manners, knowledge and attitude.  And if one or more of these qualities are lacking, there’s a good change the Buyer will look elsewhere for product.  BUT THAT’S NOT FAIR!  Just because one person’s behavior, comprehension and approach is wanting, it doesn’t mean the entire company is like that?  True . . . but from the Buyer’s perspective that may be all they have to go on in judging a supplier.  It’s important to understand that the Sales Rep may be the Buyer’s only link to the Supplier.  The Buyer may have never met anyone else at the company, nor traveled to their manufacturing facility to see the operations.  So the Sales Rep’s actions, or lack there of, may be the only thing the Buyer has to go by to determine what the entire company is like; their corporate culture, their attitude towards their customers, the capability of their products and how communication is conducted.  If the Sales Rep is unprofessional, has poor communication skills or isn’t trustworthy, that’s EXACTLY how the Buyer is going to perceive the entire company to be.  The less contact the Buyer has with anyone else at the supplier, and the less intimate the Buyer is with the company’s capabilities, management and corporate philosophy, the more important the role of “Sales Representative” will be.  This is true whether the supplier is currently providing product or would like to. 

Put yourself behind The Buyer’s Desk:  If you were a Buyer, why would you prefer the Sales Reps you encounter dress, act and conduct business in a professional manner?  What do you expect from the wait staff, sales clerks and servicemen you encounter in your private life?  Do you expect them to sincerely represent the company they work for and what their employer stands for?  A typical corporate mission statement is as follows:  “The Corporate Mission of the Acme Company is to design, manufacture and provide high quality widgets for our global customers in a timely and cost effective manner.”  So is the Sales Rep actually doing that?  Are they providing not only quality products, but QUALITY SERVICE in a timely and cost effective manner?  Are they supporting their company’s mission statement in the way they present themselves and in the way they conduct business?  Sales Professionals should remain proficient, accommodating and down to earth.  They should also be appropriately dressed for the occasion.  These days we’re all use to casual dress at work but some Reps go a bit overboard and are a bit TOO casual.  You don’t always have to wear a suit and tie to your meetings but you don’t have to look like you’re ready for a tailgate party either.  First impressions are key with the Buyer because you may never get the chance for a second one! 

From the Buyer’s perspective, a true Sales REPRESENTATIVE  maintains the following characteristics:  The Rep is honest, down to earth and proactive.  The Rep does not emit the traits or attributes of a “used-car salesman”.  The Rep demonstrates a technical and commercial understanding of the products and services they sell.  The Rep responds to voice-mails, e-mails and client requests within a reasonable amount of time.  The Rep can clearly communicate and work with the Buyer in a professional manner.  The Rep is not afraid to tell the Buyer the truth about his own company’s inabilities and errors.  Shows respect for the Buyer’s time.  The Rep listens and follows through. 

For someone who’s purchased billions of dollars worth of diverse products and services, and who has worked with thousands of Sales Professionals, what has always surprised me is that I can’t remember when any Sales Manager or Vice-President of Sales has ever asked me if I am actually happy with their Sales Representative.  I honestly don’t recall anyone of authority calling or meeting with me in person to ask how the Sales Rep is doing, if they’re providing what I need and if they’re doing it in a timely manner.  That’s sad.  I do recall a few instances in which the Sales Rep acted unprofessional in so far as to insult and even threaten one of the Buyers . . . and their Sales Manager spent his time defending the Rep instead of spending the time to REPLACE the Rep!  If you’re a Sales Manager and you found out your Sales Rep wasn’t trusted by the Purchasing Department, how would you spend your time?  If it was me I wouldn’t even ask questions . . . I’d pull them out of that account faster than the speed of light.  Beyond conducting business unscrupulously, sometimes personalities clash between Buyers and Sales Professionals.  Sometimes it has nothing to do with business and has everything to do with personality.  You could have the world’s greatest Sales Rep but if they don’t get along with the Buyer you need to pull them out and put someone else in that account until you find one that fits.  But if you’re a Sales Manager you can’t do that if you don’t even ask for feedback from the Buyer!  I guess it all comes down to asking what’s more important to you as a Sales Manager . . . defending your Sales Team no matter what, or improving business no matter what?

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“The End-Users, Part 2″

My last Post discussed the fact that End-Users of your products and services will, at times, not be forthright in discussing issues, communicating concerns or informing the Sales Professional of their real chance of receiving an order.  Again, the definition of an “End-User” is anyone other than the Buyer who is directly affected and influenced by your ability to conduct business and provide product.  There are many job descriptions that fall under the description of End-User, including but not limited to Engineers, Planners, Manufacturing, Production, Administrative and Product Consumers. 

Unless the End-User doesn’t have a problem getting in your face about product issues or being honest about your opportunities, they may mislead you about what they’re REALLY thinking in the hopes that the Buyer will be the bearer of bad news.  That’s because in most cases, Purchasing holds the financial hammer over the supply base.  So what an End-User tells you vs. what they are actually thinking may be two different things.  But one thing IS for certain: End-Users DO inform Buyers of their true intentions regarding Sales Reps and the supply base. 

So what are the End-Users really thinking but may not be sharing with the Sales Professional?  Throughout my career in Corporate Purchasing I’ve asked numerous End-Users that same question.  And surprisingly enough, based on their collective responses, there are really only a handful of things that Sales Professionals do (or fail to do) that inhibit their own opportunities for future business.  But keep in mind these are MAJOR issues as far as the End-Users are concerned . . . and they are not easily correctable by the supply base.  It will take time, energy, understanding, training and acceptance before a Supplier changes the way they conduct business and provide the End-Users with what they want and need.  And here they are: 

NO. 1: COMMUNICATION.  The number one concern from End-Users regarding the supply base is a lack of proper communication.  Now when we say “communication”, we don’t necessarily mean the Sales Rep can’t carry on a conversation or that they’re difficult to understand.  Good communication means proactively informing the right people at the right time about the right topics with the right facts.  Equally important from the Supplier’s side is follow up, feedback, responsiveness to issues and the successful completion of promises.  In other words, do you do the things you say you’re going to do when you say you’re going to do them!  The main area of concern from the End-Users when it comes to communication is the Sales Professional’s failure to inform them of late deliveries; deliveries of product, deliveries of documents, deliveries of answers.  End-Users become upset when suppliers promise a delivery date they know they can’t meet or didn’t strive to meet.  The reason they become upset is because End-Users rely on products and services being delivered by specific dates in order to meet a specific schedule.  When the schedule is not met the result is a loss of planned income by the client, not to mention a poor evaluation from the End-User’s manager.  Here are some of the things the End-Users I spoke with had to say about communication:  “Quote me a delivery date you can achieve and then do it!”     “I hate it when a supplier promises to meet a delivery date just to get the job.  That’s the last job they’ll get if I can help it”     “I prefer to be kept up-to-date on deliveries; keep me in the loop.”     “What I can’t tolerate is a lack of communication on key issues that affect timing.  If you’re going to be late on your end, let me know so that I can make adjustments on my end.”     “A promise date or commitment made to my company that is not kept is my biggest pet peeve!”  Remember, good communication means proactively informing the right people at the right time about the right topics with the right facts.  

NO. 2: DISAPPEARING AFTER THE ORDER IS PLACED.  The number two concern from the End-Users is the lack of communication from the Sales Professional AFTER the order has been placed.  One corporate engineer summed it up perfectly when he said, “It seems that after the program contract has been awarded, the Sales Pep disappears, only to return again as my best friend for the next program.  I have no desire to discuss future programs with any Sales Rep who has not suffered through past problems with me.”  It is the perception by many End-Users that Sales Professionals always hover around their desk during the quoting process.  But once the order is received they fail to return e-mails and voice-mails in a timely manner . . . if at all.  To many Sales Reps, the term “closing the deal” seems to literally mean just that!  The order has been received . . . SEE YA LATER!  If they’re interested in repeat business, Sales Professionals should pay as much attention to the End-Users during the ENTIRE program as they do during the quoting process.  So after you receive the order, return e-mails, return telephone calls, and initiate a call to see if there’s anything else you can do for the End-User.  That type of post-order placement attention will be noticed and will improve your chances of receiving future orders.

 NO. 3: NICKEL AND DIMING THE ORDER.  Concern number three from the End-Users is the supplier practice of low-balling the quote to win the purchase order, then nickel and diming the order afterwards to make up for the losses.  Some suppliers have an advantage of doing this because they know their own products better than the End-User.  Some Sales Professionals quote a job by removing some necessary but unidentified product options in order to ensure their quote is priced below their competitors.  Then once they receive the order, they “educate” the End-User of the importance of including those necessary options; options that should have been part of their original quote but are now “added expenses”.  Unfortunately the End-User may accept them because of their unawareness of the product.  And these additional options may be marked-up due to their particular function, which will eventually make up for the low-ball bid.  Some End-Users may seem like putty in the hands of the Sales Professional because of their perceived “ignorance” of product requirements.  But based on the End-User responses, most are actually aware of what the Sales Rep is doing, though may not mention it to the Rep.  Instead they mention it to the Buyer who collectively agrees to either not allow that Sales Rep to quote again, or to make it difficult for the Rep to receive future orders.  Here are some of the comments from the End-Users regarding this topic:  “Nickel and diming a low-ball bid really irritates me.  The supplier expects to make up their costs on additional but necessary items to make up for it.  I may not be an expert on what I need, but I know when I’m getting ripped off.”     “I’m sometimes forced to pay additionally for things that I know should have been part of the original quotation.  I may not like it and I may end up paying for it, but I’ll think twice about inviting that supplier to quote again.”     “I understand when suppliers legitimately overlook required items and I have no problem paying for a legitimate mistake.  But when suppliers get greedy and either nickel and dime or over charge specific items, I get really irritated.”     “I think it’s unprofessional for a supplier to come back to me and say, ‘Oh, we forgot to include this item.’  If it’s your mistake you should eat the cost.  An oversight on your part should not automatically mean another dollar out of my pocket.”     “Suppliers continuously ‘buy’ jobs without reading and understanding the specifications.  Then they attempt to either delay the job add extra cost after the fact when the specifications are finally understood.” 

NO. 4: ON-SITE SERVICE.  The subject of on-site service is one of the most frustrating topics to discuss for both the End-User and the supplier.  End-Users expect immediate service.  Suppliers expect to be fairly paid for their time.  Sometimes neither situation happens which tends to drive a wedge between the two groups.  The main problem is that the End-User and Supplier rarely sit down in the early stages of a program to agree to the rules and define responsibilities for on-site service.  Too many assumptions are made on both sides and it ends up affecting both parties.  At the very least, the End-User and Supplier need to meet to review the following items:  1.  Define and detail exactly what a service warranty covers.  How long does it cover it and exactly when does it start?  Where will the service be coming from to support the warranty and what is the timeframe between the service call and the supplier showing up?  How will both parties resolve issues on whether it was a warranty service call or not?  What is not covered under warranty?  What End-Users actions (or lack thereof) will void the warranty?     2.  Clarify the differences in definition and price between a standard service call and “emergency service”.     3.  Define the entire process of service work; from which facility entrance to enter, to whom service can contact during issues while on-site, to what safety items are required by service, to what type of work order needs to be approved, and who has the authority to sign and approve the work order.     4.  Determine what each party expects out of the other.  End-Users should expect a competent and professional service crew, while the supplier should expect the products to be ready and available for service when they arrive.     5.  Finally, maintain an updated contact information sheet; who to contact for emergencies and during off-hours (weekends and Holidays).  The Bottom Line: A supplier who can go above and beyond the call of duty in providing adequate service in a timely manner, without financial or personality issues to appease the End-User’s concerns will stand out from the competition.  It will also encourage the End-User to recommend to the Buyer future business with that supplier.  Most End-Users will admit they expect problems with products; that there is no perfect mousetrap.  What gets their attention is the supplier who does everything in their power to ensure that product is working again as soon as possible and without being prompted to do so by the Buyer or End-User.  Additional Tip:  Some of the End-Users responded that if a service rep is in the plant and has successfully completed the scope-of-work, they should find out if anything else in the plant requires their assistance before leaving.  At the very least, talk to someone in charge before you leave and ask how their other products are working.  Not only will it show to the End-User that you’re proactive, it may very well increase the value of your service call. 

NO. 5: THE QUOTING PROCESS.  It’s important to understand where the mindset of the End-User is regarding the quoting process.  The collective responses from the End-Users confirms that it’s important to read, comprehend and quote to the specifications in the request-for-quote package.  Quotes that are not properly addressed, are not thoroughly covered and are not itemized will NOT be well received by the End-Users.  Ask the End-User what their preferred quotation format looks like; ask them how they prefer the quotations they receive to be organized and detailed.  Here are some of the comments from the End-Users regarding supplier quotes:  “Not enough information.  I have no idea how the components of the product are going to work.”     “I prefer an operation-by-operation description in detail so that I can mentally see what the product is going to do.”     “I can’t stand it when a supplier’s quote is too vague.  What that says to me is that the supplier really doesn’t know what’s going on or what I’m asking for.”     “First, give me exactly what I ask for.  THEN, offer a best solution.  If I don’t seem to know what I’m talking about or what I need, politely educate me.”     “You need to convince me that your product will work.  Don’t just hand me a quote and tell me to call if I have any questions.  I may not always have the time to sit and discuss your quote, but I need to know upfront if your product can do the job.”     “Don’t just hand me a quote, sell me on a solution!” 

One Final Tip from the Buyer’s Desk:  Finding out if your quote is acceptable by the End-User isn’t simply a matter of asking questions . . . it’s knowing what questions to ask.  If you’re trying to get information out of the End-User, don’t ask a question that will provide a “yes” or “no” answer.  Ask a question that compels the End-User to give detailed informationWHAT NOT TO ASK:  “Do you have any questions?”     “Is everything okay?”     “Do you see anything wrong with the quote?”     “Do I have a good chance of receiving the order?”  INSTEAD, ASK LIKE THIS:  “If there was something that was included or missed that may prevent a supplier from receiving the order, would time allow you to contact them or would you be compelled to disqualify them?”     “What items in our quote would prevent us from receiving the order?”     “What specifically stands out in our quote that you like or that we could improve on?”     “If we were the low-bid supplier for this job, what would technically prevent us from receiving it?”

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“The End-Users, Part 1″

When conducting business with Corporate Buyers it always helps to know what they’re really thinking but, for business and political reasons, may not be telling you.  The same is true with the “End-Users” of your products and services.  In fact, knowing what an End-User is really thinking becomes especially important if you have no direct access to the Buyer.  The definition of an “End-User” is anyone other than the Buyer who is directly affected and influenced by your ability to conduct business and provide product.  There are many job descriptions that fall under the description of End-User, including but not limited to Engineers, Planners, Manufacturing, Production, Administrative and Product Consumers.  Unfortunately, a large number of End-Users do not want the Sales Professionals to know what they’re really thinking and may go so far as to mislead Sales into believing everything is okay.  WHAT???  Can that be?  Say it’s not so!  Ladies and gentlemen, welcome to the real world! 

Most End-Users do not want to become directly involved in issues concerning a Sales Professional’s inability to properly quote, or their inability to conduct business according to the End-User’s preferences.  In terms of candid feedback, most End-Users would rather complain about the Sales Rep to the Buyer instead of directly to the Rep.  WHY?  Because most End-Users would rather not get involved in the efforts and politics of straightening out a Supplier nor spend the time correcting their oversights.  Generally speaking it’s the End-User’s conviction that Purchasing is the responsible organization to handle Supplier issues, not theirs.  They believe that the Buyers have more leverage and influence on the supply base than an End-User.  And in most cases, they’re right!  Buyers usually do have more influence when it comes to Supplier issues than an End-User because Purchasing holds the financial hammer over the Supplier’s head.  Therefore, some End-Users will use the threat of Purchasing against a Supplier like a mother threatening their child, “You wait until your father gets home!”  Obviously there are exceptions to the rule because there are some End-Users that will become QUITE BLUNT with Suppliers.  But for the most part, and depending on the company, End-Users rely on the Buyer to deal with Supplier issues in order to avoid any dilemmas. 

In case you’ve ever had a suspicion, I can personally confirm that there are times when a Sales Professional asks an End-User if their quote is acceptable and the End-User replies that everything is fine . . . when in fact it may not be.  Quite candidly, the End-User may be misleading, may put off a reply or may simply perjure themselves about a Supplier’s chances of receiving an order.  Go ahead and ask an End-User.  They’ll deny it!  They tell you they don’t . . . but they tell me they do!  Because what the End-User’s REALLY hoping for is that the Supplier’s quote will be disqualified “commercially” by the Buyer so they don’t have to take the time and effort to meet and discuss why it wasn’t acceptable “technically”.  Of course this doesn’t happen with every End-User on every project, but it does happen and more often than you think.  (I really shouldn’t be telling you this!) 

Here’s a real-world scenario that takes place more often than not: A Sales Rep meets with an End-User to discuss the technical portion of their quote.  The End-User tells the Sales Rep they have no major concerns or questions regarding their quote.  The Sales Rep then informs the Buyer of their “perceived” successful meeting with the End-User.  Afterwards, the Buyer calls the End-User and finds out that in fact the quote was NOT acceptable; specific product information was missing, the product did not meet specifications, or the End-User simply doesn’t want to use the Supplier.  The Buyer asks the End-User why they didn’t give an honest response to the Supplier.  The End-User replies they don’t have the time, patience or desire to sit with every Supplier and inform them of their deficiencies, especially if they have no interest of placing the order to them. 

So can we blame the End-User for not necessarily being as straight forward as they should be with Sales Professionals?  Not really . . . because we do the same things in our private lives!  We would rather not have to explain to a retailer why we didn’t choose to buy their products or services.  We won’t always be honest or forthright when telling someone why we don’t want to buy from them.  Have you ever have a bad experience in a restaurant, i.e. poor service, lousy food?  But when the manager asks you if everything is okay you keep your negative thoughts to yourself.  You mislead the restaurant manager, thinking all the while that you won’t be back.   Most consumers do not want to become involved in issues or get into a confrontational situation.  That’s human nature.  Most people would rather avoid those scenarios knowing they won’t be returning anyway.  Well, End-Users are no exception, though there are exceptions to the rule.  Just as some us of DO complain about poor service and faulty products, some End-Users absolutely love confrontation with Suppliers.  Unfortunately those types of encounters are usually counter-productive and don’t tend to improve the situation or create future opportunities for the Sales Professional.

My next Post will inform you as to what the End-Users are REALLY thinking and how you can improve your business opportunities with them.

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“Buyer-Endorsed Voicemail”

With the advent of voicemail, call-waiting and other telecommunication innovations, it’s never been easier for the Buyer to screen his calls, listen to messages without interruption, and be the controller of communication without even speaking directly with the Sales Rep.  Cold-call messages are left by the Sales Rep with the hope of a return call.  Requested information is provided to the Buyer without a response.  Calls to the Buyer asking for the progress of supplier selections are left unanswered.  Not so good for Sales but it’s in a Buyer’s nature (and best interest) to manage incoming calls and decide which ones to respond to and which ones will stay unreciprocated. 

Sometimes, sales call voicemails are deleted by the Buyer before they even reach the end of the message; not unlike you opening and quickly throwing out junk mail in your private life.  In short, what modern technology has done for the Buyer is to provide him with the ability to weed out unwelcomed, unprofessional and uninteresting communication without having to explain to anyone why.  So what can Sales Professionals do to help ensure their voicemail is accepted, proficient and appealing enough to keep the Buyer’s attention and entice them to call back?  How can Sales Reps use voicemail to their advantage?  And what are some of the things Suppliers do (or fail to do) regarding voicemail that irritates Buyers?  That’s the focus of this Post. 

You’re a Sales Professional.  You’re prepared for your call to the Buyer.  You know exactly what you’re going to say.  You pick up the telephone, dial the number and the next thing you hear is . . . “Hi, this is Jim Mason.  I’m either away from my desk or on another call.  After the tone leave your name, number and a short message and I’ll get back to you as soon as I can.  BEEP!”  DANG!  The Buyer’s not there!  Either that or he’s just not picking up.  So what do you do now?  What are your options?  You could hang up at this point and try again later.  You could leave a message to let him know you called and will call back at another time.  Or you could leave a message and ask for a return call.  (Good luck with that!) 

Proper telephone and voicemail communication are extremely important to both Sales Professionals and Buyers.  From the Buyers’ perspective it’s best not to clog the Buyer’s voicemail box with insignificant messages.  Remember that the Buyer’s voicemail box may only have storage for a limited amount of calls.  So don’t leave a message just to say, “Sorry I missed you.  I’ll call back.”  Instead, JUST CALL THE BUYER BACK!  Also, if you leave a “cold-call” message and ask the Buyer to call back, he probably won’t.  Think about this: Why would a Buyer return a cold-call voicemail from a Sales Rep?  How many voicemails do you get at home from window replacement businesses or credit card companies asking you to call back?  Probably several a month unless you’re on the National-Don’t-Call list.  Have you ever called them back?  NO!  So why would a Corporate Buyer? 

If you need to get a hold of the Buyer, keep trying!  Don’t put the ball in the Buyer’s court to call YOU back because that now puts the Buyer in control of the communication.  As a Corporate Buyer, if I had to return every voicemail I received from Sales Professionals requesting a call back I would never get my job done.  If you want the business, work for it!  If you want to get a hold of the Buyer, keep trying!  Relying on the Buyer to call you back puts the control of business opportunities on his side . . .  NOT YOURS!  If the Buyer asked you to call back but he never picks up, send him an e-mail to let him know you’ve been trying.  And if you need to leave a voicemail and you want the Buyer to call back, here are some Buyer-Endorsed techniques to help ensure that happens: 

1.  Make sure you CLEARLY identify yourself, CLEARLY and QUICKLY state why you need the Buyer to call you back, and CLEARLY and S-L-O-W-L-Y give him your call-back number.  From the Buyer’s side of the desk I can tell you that the vast majority of Sales Professionals rattle off their telephone number SO FAST that either I can’t understand it or can’t write it down fast enough!  Now I have to play the entire back message back again just to get the last few digits of your number.  That’s annoying and it happens way too often!!!  The best practice is to give your number immediately after stating your name and company name.  “Hello, Mr. Mason.  This is Robert Jones from the Acme Company.  My number is 555-123-4567.  I have a quick question regarding the purchase order we just received and, given your busy schedule, I’d appreciate a call back.  Again, my number is 555-123-4567.  Thank you.” 

2.  Most Sales Professionals never even LEAVE their number during the message.  So now, if I actually want to call them back I have to take the time to look for it.  Never assume the Buyer has your phone number memorized or immediately accessible.  Always leave it in the message!!!  It doesn’t matter if your telephone number is tattooed on the Buyer’s arm . . . leave your telephone number!  Remember: Common sense and common courtesy!  Imagine your dentist’s office leaving a voicemail asking you to call them back because they need to change your appointment, but they don’t leave their phone number.  Now you have to spend the time to look it up.  It’s frustrating and it wastes time! 

3.  Another thing to keep in mind is that when leave a voicemail with the Buyer, always leave your full name and company name.  It doesn’t matter if the Buyer is your twin brother; BE PROFESSIONAL!  I get voicemails from Sales Reps that say, “Hey, it’s me . . . call me back.”  (Okay, who is ME?)  Or, “Hi Chris, it’s Bob, give me a call.”  (Okay, Bob WHO?)  Or, “Hi Chris, it’s Bob Jones.”  (Okay, I recognize your name, but I deal with so many people that I can’t always remember who everyone works for.)  “Hi Chris, it’s Bob Jones with the Acme Company.”  AH HA!  Now I know who you are!  Don’t rely on the Buyer to have a photographic memory, especially if you need a call back!  Be professional! 

4.  Finally, give the Buyer a good reason to CALL BACK.  Make the Buyer WANT to call you back:  you have product cost savings to discuss; you have a potential issue that could affect delivery; you have a question that needs answering before an order can be fulfilled; you need assistance because you’re not getting feedback from the end-user and it may affect timing.  Most Buyers will call back if your reason for calling has something to do with their responsibilities, budgets, production schedules or anything that would result in a poor appraisal on their end.  Convey the premise that you’re calling to help THEM; to assist in THEIR wants and needs.  Don’t make it sound like the focus of their return call will be only to help you. 

When it comes to electronic communication, e-mails and voicemails are all critical tools in doing business with the Buyer.  That’s why it’s essential for you to leave a message on your OWN e-mail and voicemail if you are on vacation, traveling, sick, or simply out of the office for an extended period of time.  The message should clearly state that you’re out of the office, when you’ll be returning and who to contact for any emergencies.  IF YOU WERE A BUYER, why would it be important to know who to contact if the normal Sales Rep is out of the office?  And as a Sales Professional, how can you remind yourself to ALWAYS leave an out-of-office message on your e-mail and voicemail? 

TRUE STORY: A few years ago while working for Chrysler I attempted to call “Scott”, a Sales Rep working for a capital equipment company.  I wanted to invite him to attend a supplier line-up meeting to quote a new project worth millions.  I left numerous voicemails and sent as many e-mails trying to get a hold of Scott to make sure his company attended the meeting.  Unfortunately, Scott was in training all week.  But he never left a voicemail or e-mail response message stating he’d be out of the office and who to contact in his absence.  I was finally able to get a hold of Scott’s Vice-President of Sales; that’s when I found out he was in training, so they sent another Sales Rep in Scott’s place.  After all that was said and done, their company DID end up with the order but no thanks to Scott.  Imagine if I hadn’t been motivated enough to call the V.P. of Sales!!!  They never would have had the opportunity to quote.  Can your company afford to make that kind of simple oversight?

 Here’s the type of message you should leave on your voicemail and e-mail if you’re out of the office for an extended period of time:  “This is Janice Smith, Sales Engineer for The Acme Company.  I am presently out of the office and will be returning to work the morning of April 26.  If this is an emergency please contact Mr. Jerry Brown at 555-123-7654.  Otherwise, please leave a message and I’ll respond when I return.”  Sounds like a simple, common sense thing to do, especially for a Sales Professional.  But that’s the reason for my Posts . . . to provide professional feedback and point out the obvious things Sales SHOULD be doing but, at times, fail to do, thereby reducing their opportunities.

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“Is Management to Blame?”

Yesterday I received a cold-call from a Sales Rep with the hopes of providing product to my company.  The phone call went pretty much like this:  SALES: Hello Mr. Locke.  My name is Dave Jones (not his real name) and I work for Acme Products (not his real company).  I wanted to set up a meeting with you to discuss how we can provide our widgets (not his real product) in support of your ABC Program (not a real program) located at your Cleveland plant (not the real location).  ME: Dave, thank you for your call.  Unfortunately none of the three things you mentioned have anything to do with me or my facility.  First of all I’m not the responsible Buyer of widgets.  Second, our plant is no longer located in Cleveland because it moved out of State nearly two years ago.  Third, the ABC program is not conducted out of our new facility . . . it’s conducted at our global facility in France (not the real country).  SALES: Oh, I’m sorry about that.  So who could I talk to about widgets?  ME:  I’m not trying to be rude, Dave, but I don’t think it’s my job as a Buyer to do your homework for you.  What you should do is take the time to look up my company on the Internet, find out where our facilities are located, what they manufacture, and which area might need your widgets.  Then make some phone calls to those areas and find out who the responsible Buyer is.  SALES: Yes, okay.  Thank you for the advice.  Sorry to have bothered you.  ME:  No problem.  Good luck. 

At that point the cold-call ended and I shared it with the Buyer sitting next to me.  He shook his head and made a comment that the Sales Rep obviously wasn’t prepared to make the call with the hopes of making a sale.  Of course that wasn’t a brilliant observation on my colleagues part and I’m certain everyone reading this Post is thinking the same thing.  After all, only a “green” Sales Professional would make the obvious oversights that Dave Jones made, right?  To me it really doesn’t matter if Dave Jones was “green” or “seasoned”.  Being “green” shouldn’t be an excuse.  My question is: was it his fault or the fault of Sales Management that he failed to do even the most basic research before making that cold-call?  Was he compelled by Management to make as many calls as possible with the hopes making an eventual appointment?  Was he instructed to spend more time looking for new prospects instead of satisfying existing ones?  Was he ever provided any type of sales training that covered cold-calls?  Or was he simply hired and thrown out to the wolves without the most basic of training?  Quite frankly, I remained calm and polite during Dave’s cold-call because I couldn’t blame him for his ineptness.  I do, however, blame his Management.  After all, isn’t it Management’s responsibility to coach, teach and mentoring their sales team? 

Now if you’re in Sales Management please don’t get bent out of shape.  I don’t create these Posts to point fingers at every Sales Professional, every Sales Manager or even every Buyer.  The vast majority of professionals out there are great people to work with.  But if you could spend one week on my side of the desk you would quickly realize that even the most seasoned Sales Professionals make errors in judgment during the sales process; errors that may seem like the right thing to do on the Sales side, but from the Buyer’s side it’s contrary to our needs.  And when I ask Sales Reps what compelled them to make the errors they made, their number one response is, “It’s mandated by my Management.” 

And therein lies a common yet major dilemma in the business world: conflicting views of how Sales Professionals should conduct business . . . the Buyer vs. the Sales Manager.  This leaves the poor Sales Rep in the middle trying to please both sides.  For instance, some Sales Managers want their people to move on to the next sale after the order is placed, while Buyers want them to stick around and be available if issues arise or if questions need answered.  Some Sales Managers want their people to mislead possible delivery issues, while the Buyer need to know the truth so they can make contingency plans.  In both instances, the Sales Professional must now make a choice; upset the Manager and risk disciplinary actions or upset the Buyer and risk future business.  The root cause of this dilemma lies in the fact that Sales Managers and Buyers are primarily concerned with their own goals and objectives, which at times do not correspond with each other.  The Sales Manager wants the best profit.  The Buyer wants the best price.  The Sales Manager wants the best usage of his Sales Rep with all of their responsible clients.  The Buyer wants the Sales Rep’s attention 100% of the time and doesn’t care much about other clients. 

The good news is that this dilemma is fixable.  The goals and objectives of each party must be made clear and understood by both sides.  Both parties must also focus on what they do agree on; profitability and a long term relationship.  The final negotiated price must make profit for the Sales Manager and, at the same time, be within the Buyer’s budget.  Repeat business is preferred by the Sales Manager while doing business with a known supplier is preferred by the Buyer.  The real danger lies in those instances in which the Sales Manager directs the Sales Rep to do something the Rep knows will upset the Buyer.  In that case, the Rep should inform the Manager of the possible damaging consequences and attempt to either change the Manager’s mind or convince the Manager to join him at the next meeting with the Buyer.  Of the thousands of Sales Professionals I’ve worked with, I rarely had the opportunity to actually meet their Sales Manager.  Perhaps if more Managers periodically joined their sales team in the field, they’d be able to stay in touch with current or potential clients and hear for themselves what separates their own objectives from the Buyers.  This would certainly make life easier for everyone, especially the Sales Rep!

Posted in From the Buyer's Desk | Leave a comment